Country Guides
Switzerland
Employment in Switzerland at a glance
Capital
Bern
Language
German/ French/Italian/Romansh
Remote workers
1.5 million
Currency
Swiss Franc (CHF)
Working hours
40 hours per week
Public holidays
8-15 days per year
Minimum hourly salary
Varies depending on the canton
Tax year
Jan 1 - Dec 31
Date format
DD/MM/YYYY
Misclassification penalties
Worker misclassification is a serious compliance issue that can lead to significant financial and legal consequences for businesses operating in Switzerland. Under Swiss labour law, correctly determining whether a worker is an employee or an independent contractor is crucial for avoiding fines, retroactive payments, and potential lawsuits.
Fun fact
People in Switzerland eat around 10–11 kg of chocolate per person each year, making it one of the highest chocolate consumption rates in the world.
Taxes in Switzerland
Employer contributions
-
Employment tax: 0%
-
Social Security: The Swiss social security / pension system is built around three “pillars” which work as three layers of retirement protection. Pillar 1 and 2 are mandatory and employers are taxed at 7.4% - 9.4% for Pillar 1 and 3.5% - 9% for Pillar 2
Employer social security contribution
1st pillar
Contribution: Old-age, survivors and disability insurance + income compensation (AHV/IV/EO)
Rate: 5.3%
Contribution: Unemployment insurance (ALV)
Rate: 1.1% (up to CHF 148,200 salary)
Contribution: Family allowances
Rate: ~1% – 3% (varies by canton)
Contribution: Administrative fees
Rate: Varies by compensation fund
2nd pillar
Age: 25–34
Minimum contribution*: ≥ 3.5%
Age: 35–44
Minimum contribution*: ≥ 5%
Age: 45–54
Minimum contribution*: ≥ 7.5%
Age: 55–65/64
Minimum contribution*: ≥ 9%
*Employers must contribute at least 50% of occupational pension (BVG) contributions, though many employers contribute more depending on the pension plan.
Employee contributions
-
Income tax: Progressive; typically ~10% – 35% depending on income level, canton, and municipality of residence.
-
Social security contributions: 7.4% - 10.4% for Pillar 1 and 3.5%-9% at maximum for Pillar 2 (if the employer pays more than 50% of the share, the employee will have to only pay the balance)
1st pillar
Contribution: Old-age, survivors, disability and income compensation insurance (AHV/IV/EO)
Rate: 5.3%
Contribution: Unemployment insurance (ALV)
Rate: 1.1% (up to CHF 148,200 salary)
Contribution: Non-occupational accident insurance (NBU)
Rate: ~1% – 4% (varies by insurer and industry)
Contribution: Occupational pension (2nd pillar – BVG)
Rate: Varies by age and pension plan
2nd pillar
Contribution: Occupational pension (BVG)
Rate: Varies by age and pension plan for a maximum of 3.5%-9.0%
Income tax
Switzerland levies income tax at three levels: federal, cantonal, and municipal. The table below shows federal tax rates only, and total tax liability varies depending on the taxpayer’s canton and municipality of residence.
Taxable income (CHF): 0 – 18,500
Tax rate (%): 0%
Taxable income (CHF): 18,500 – 33,200
Tax rate (%): 0.77%
Taxable income (CHF): 33,200 – 43,500
Tax rate (%): 0.88%
Taxable income (CHF): 43,500 – 58,000
Tax rate (%): 2.64%
Taxable income (CHF): 58,000 – 76,100
Tax rate (%): 2.97%
Taxable income (CHF): 76,100 – 82,000
Tax rate (%): 5.94%
Taxable income (CHF): 82,000 – 108,800
Tax rate (%): 6.60%
Taxable income (CHF): 108,800 – 141,500
Tax rate (%): 8.80%
Taxable income (CHF): 141,500 – 184,900
Tax rate (%): 11.00%
Taxable income (CHF): 184,900 – 793,400
Tax rate (%): 13.20%
Taxable income (CHF): Over 793,400
Tax rate (%): 11.50%
Total Income tax burden (individuals)
-
Low-Tax cantons (e.g., Zug, Schwyz): 10%–15%
-
High-Tax cantons (e.g., Geneva, Bern, Vaud): 30%–40%+
Employer of Record in Switzerland
What is an EOR?
An Employer of Record is the legal employer of a worker in Switzerland. As such, the Employer of Record takes care of all Switzerland compliance aspects of employment, including payroll, taxes, statutory benefits, employment contracts and more.
EOR responsibilities
-
Ensuring their employment is compliant with local employment laws
-
Processing local payroll
-
Filing employment related taxes and returns
-
Issuing payslips to the employee
-
Distributing salary payments
How it works
-
Company
Maintains a direct relationship with the employee, allocates them work tasks, and manages their performance.
-
Boundless
Takes care of payroll, taxes, benefits, ensuring the employee and the company are compliant with all legal regulations.
-
Employee
The third party to the agreement, the employee, fulfils all of their obligations as a worker for the company.
Benefits in Switzerland
Statutory benefits in Switzerland
-
Accident insurance (UVG)
Employers in Switzerland must provide accident insurance (UVG) covering occupational accidents up to a maximum insured salary of CHF 148,200 per year, with the average premium for occupational accident insurance (BU) around 0.79% of salary paid by the employer
-
Old-age, survivors, disability and income compensation insurance
Employers contribute 5.3%
-
Unemployment insurance
Employers contribute 1.1% of salary up to the contribution ceiling
Non-mandatory benefits in Switzerland
-
Additional vacation days
-
Subsidised meals or canteens
-
Public transport allowance
-
Home office allowance
-
Flexible work arrangements
-
Professional development
-
Gym memberships or wellness allowance
Rights & protections in Switzerland
Right to equal pay
Right to payslip
Right to a safe and healthy workplace
Anti-discrimination and equality protection
Protection against unfair dismissal
Data protection and employee privacy
Leave in Switzerland
Paid time off
20-25 days
Sick leave
15 days paid by employer followed by 2 years of daily sickness benefits insurance (Krankentaggeld) for 2 years after which disability insurance or occupational pension pillar 2 might kick in
Maternity leave
14 weeks
Paternity leave
2 weeks taken within six months of the child's birth
Compassionate leave
1 to 3 days for death of wife, husband, registered partner etc.
Employment conditions in Switzerland
Probation
In Switzerland, the standard probation period ranges from one to three months, unless otherwise specified in the employment contract or collective agreement.
Written employment terms
Employers must provide written employment terms if the contract exceeds one month (including salary, working hours, and notice periods).
Payments in Switzerland
Payday
Employees usually receive their salary at the end of the month, unless otherwise specified in the employment contract or collective agreement.
Payment frequency
Salaries in Switzerland are typically paid on a monthly basis.
End of employment in Switzerland
Terminating employment in Switzerland requires careful consideration, as Swiss employment law provides significant protections for employees.
Employment relationships can be terminated in four ways:
- Mutual agreement between the employer and employee
- Resignation by the employee, respecting the applicable notice period depending on length of service
- Unilateral termination by the employer, in accordance with statutory notice periods
- Expiry of a fixed-term contract
Swiss labour law also protects employees from dismissal during certain protected periods, including pregnancy and maternity leave, temporary illness or accident, and military or civil service obligations. In some cases, employees may also be protected due to family-related circumstances.
Employees who believe they have been unfairly or abusively dismissed may challenge the termination and seek financial compensation.
FAQs
Companies hiring in Switzerland have four main paths. You can run payroll from your HQ for short-term cases, engage contractors for project-based work, set up a local entity to hire directly, or partner with a temp agency licence holder. Standard EOR isn’t a recognised model in Switzerland; Boundless holds the required temp agency licence to hire compliantly without setting up a local entity.
Contractors work well when the relationship is project-based and the person serves multiple clients. If an individual gives their full and undivided attention to your company in Switzerland, employment is the right structure under Swiss law, covering entitlements like paid annual leave, sick leave, and social security contributions. For project-based contractor engagements, Boundless’s Agent of Record (AOR) service handles classification, contracts, and payments compliantly in Switzerland.
HR compliance in Switzerland means your policies and procedures respect all applicable Swiss labour laws and regulations. When you hire in Switzerland, this matters both to safeguard employee rights and to reduce employer risk. Compliance covers labour law, sick leave, annual leave (20-25 days), tax credits, and a 40-hour working week. Note that minimum wage rules vary by canton. Following these is fundamental for running the business well.
Standard EOR isn’t recognised in Switzerland; a temp agency licence is required, and Boundless holds one. We are the legal employer of the individual for Swiss government, tax, and employment authorities, providing a locally compliant contract, running payroll, filing employment taxes, and administering statutory benefits such as 14 weeks of maternity leave and 20-25 days of annual leave. You manage day-to-day work and fund payroll each cycle.
Boundless partners with employment lawyers and advisers in each country we operate in, including Switzerland. They ensure employment contracts and onboarding documents comply with the local jurisdiction. We hold detailed discussions on specific norms such as payroll, social protection, data protection, notice periods, and work-from-home regulations. When a sensitive issue arises, our internal team engages the relevant firm promptly.
Both employers and employees in Switzerland pay social security contributions. Employer contributions include AHV/IV/EO old-age and disability insurance (5.3%), unemployment insurance (1.1%), family allowances (varies by canton), and Pillar 2 occupational pension (3.5-9% based on age). Employees pay matching contributions plus federal, cantonal, and municipal income tax. Use the salary breakdown calculator for exact figures.
Can’t find what you’re after?
Or maybe the country you’re looking into isn’t available yet?
Employment cost calculator
Understand the employment costs you have to consider in any country
Global employment made gloriously uneventful
Talk to us and discover Boundless possibilities
Book a personalised discovery and get your questions answered by our experts.
